Saturday, June 09, 2007
Follow up, On second appearance in the Supreme Court, black sheep member of Aaron Ferer & Sons metal trading company loses appeal seeking stock gifts from father who founded the company while giving a pass to the company's corporate counsel. Ferer v. Aaron Ferer &; Sons Co., S-05-730Father planned to issue stock gifts to three children in business but only if they stayed actively involved with the company. Father executed stock transfer documents but did not deliver them. After dissatisfied son left the company, he revoked his gift. Supreme Court agrees with Doulgas County District Court that gift transaction did not occur. The Supreme Court also gives a pass to the company's corporate counsel who had already noted the incomplete stock gift in its record books. "Aaron argues that Harvey’s alleged 1995 gift was complete and irrevocable when the transfers were noted by E&S in the maroon books. Assuming without deciding that the maroon books were the official stock records of AFSCO and that recording the transfer in those books could constitute constructive delivery, we nonetheless conclude that the gift was defeated by Harvey’s lack of a present donative intent.